NIIT Technologies posts 5.3% rise in 2013-14 profit

NIIT Technologies on Friday reported a 5.3% rise in net profit to Rs 230 crore for the year ended March 2014. Consolidated revenue was Rs 2,305 crore, up 14% from Rs 2,021.36 crore last year.

During April-March 2014, the US business grew 29% and contributed 42% to the revenue. Banking and financial services contributed 34% to revenue while travel and transportation contributed 37%. The company got new business of $749 million, an increase of 103% over the previous year.

Arvind Thakur, chief executive officer, NIIT Technologies, said, "2013-14 was a year of consolidation. During the year we enhanced our focus on western markets and reorganised ourselves to create a platform for higher growth."

For the fourth quarter, the company posted 9.5% higher revenue and net profit of Rs 588.5 crore and Rs 61.9 crore, respectively, compared to the year-ago period.

However operating profit grew 0.7% to Rs 588.5 crore during January-March. Consolidated revenue for the quarter rose 0.2% sequentially.

Abhishek Shindadkar, senior analyst, ICICI Direct, said, "The fourth quarter results were below our estimates, led by revenue decline from a travel & transport client and slippage of a milestone-related payment from an Airport Authority of India contract. We were expecting 2.5% quarterly growth in revenue on a sequential basis."

"The year 2014-15 has started with a strong order book, representing a 15% increase in orders executable over the next 12 months," said Rajendra S Pawar, chairman, NIIT Technologies.

The company has recommended Rs 9 per share as dividend for 2013-14. In 2012-13, the figure was Rs 8.50. On May 9, the stock ended the day at Rs 414 on the Bombay Stock Exchange.